While the recent trend of global
protectionism and export risks of major countries are expanding, the Middle
East and Africa are emerging as powerful markets. It seems promising to target
the Middle East with medical care, halal products and consumer goods, while
exporting consumer goods, IT, automobiles and construction equipment to Africa.

The Institute for International Trade
(President, Shin Seung-kwan) of the Korea International Trade Association
issued two reports titled 'Get on the rising air of the Middle East' and 'The
Wiggling Frontier Market of Africa' on March 26, and advised to pay attention
to the markets in the Middle East and Africa with great growth potential in
order to diversify Korea's export market.

According to the report, the two
regions are continuing the steady economic growth based on the abundance of
underground resources and young consumers. The United States, the European
Union and China have already been actively entering into the markets, while Korea’s
market shares of those regions have been lagging far behind.

With a young and wealthy population
and abundant natural resources, the Middle East is expected to grow at a rate
of 3 percent this year, driven by oil price hikes. In addition, as the
government of each country actively promotes industrial diversification in
order to reduce energy dependency, it is expected to see growth in various
fields, including manufacturing and retail distribution. The report stresses,
‘The Middle East region is growing with its high purchasing power, women's
increased social advancement, and e-commerce expansion. Korean companies need
to focus on local markets of consumer goods, medical devices, pharmaceuticals,
and customized products for Halal and Muslim.’

Recently, Africa is emerging as a
frontier market with a combination of political and economic stability and a
rise in strategic value as a resource development market. The report states,
‘Africa has high growth potential, especially in the consumer goods,
automotive, information and communications technology (ICT) and construction
equipment markets. However, since the resource distribution, population
characteristics, economic development and income level of the 49 countries are
all different, it is important to differentiate approaches to each market and
carry out joint growth strategies through R & D investment, technology
transfer, and industrial cooperation.

Yoo Seung-jin, a researcher at the
Korea International Trade Association, said, "The Korea International
Trade Association is opening the UAE center in Dubai on March 27. We will
utilize this center as a hub and actively support Korean companies’ entry into
the markets in the Middle East and Africa."